Thailand Collaborates with 2 Banks and Singapore Payment Service to Launch Retail CBDC Pilot

Thailand has partnered with two banks and a Singapore payment service to start a pilot program for its retail central bank digital currency (CBDC).

CBDC wants to enhance financial transactions and promote digital innovation in Thailand’s retail sector through this collaboration. The pilot program will give valuable insight into the feasibility and benefits of CBDC.

Thai Central Bank Launches Retail CBDC Pilot with Partners

The pilot program will involve bank employees and nearby businesses in the retail CBDC project. To participate in the project, each payment provider has developed its own app.

This month, Thailand’s central bank is piloting a retail digital currency (CBDC). Approximately 10,000 people could be involved in the project, which will be conducted in a sandbox. This pilot will test and evaluate the CBDC’s functionality and user experience until August. 

The Thai central bank partners with the Bank of Ayudhya (Krungsri), Siam Commercial Bank, and 2C2P, a Singapore-based payments company. Collaboration involves developing apps with features like digital wallets and QR code scanners for selected users. 

Taking this step will help Thailand explore the potential of CBDC technology and make digital payments more convenient.

By introducing CBDC, Thailand will join many countries actively looking for ways to make digital payments easier and more accessible. This will allow Thailand to take advantage of the latest technology and explore the potential of digital payments.

2,000 Krungsri employees and about 100 merchants around the bank’s headquarters will participate in the project. Eventually, it’ll expand to Ploenchit. Krungsri Innovate’s Sam Tanskul says:

The bank needs to determine a strategy to differentiate retail CBDC from [its] PromptPay service.

In addition to Krungsri, Siam Commercial Bank will run a pilot program with its staff and nearby merchants.

Bank of Thailand’s CBDC Pilot: Learning Project and Future Plans

Initially planned for launch in 2022, the pilot program was announced in August. Instead of a pilot launch, the Bank of Thailand considers a “pilot to learn.” The central bank doesn’t plan to introduce a central bank digital currency (CBDC).

The central bank doesn’t plan to introduce a central bank digital currency (CBDC). The Bank of Thailand wants to explore the technology before deciding whether or not to introduce a CBDC. The goal is to understand the potential implications and risks before committing.

In 2018, the Bank of Thailand revealed its plans to create a wholesale central bank digital currency (CBDC). It has since collaborated with the Bank for International Settlements on the mBridge cross-border payment project and partnered with the Hong Kong Monetary Authority on the Project Inthanon-Lion Rock initiative.

In March, Thailand exempted companies issuing investment tokens from corporate income tax and VAT. Even though it will cost $1 billion in revenue, it’ll boost investment, possibly bringing in $3.7 billion in two years. 

The government hopes to encourage more investment in the country by exempting these companies from taxation. The belief is that the influx of capital from investors will outweigh the lost revenue from the tax exemption.

It reflects Thailand’s commitment to embracing digital assets and creating a favorable environment for blockchain-based projects.

Read more: 

• Thailand Implementing Blockchain-Based VISA System for Visitors